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Mayor's Office of Housing
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Police in the Community Loan Program (PIC) |
We will not accept applications from non-participating lenders, for the list of participating lenders , please go to DALP web page
Program Overview
The Police in the Community Loan Program (PIC) provide down payment assistance loans to police officers purchasing their first home in the City and County of San Francisco. Loan funds have been made available through the contract negotiations between the City and the Police Officer’s Association.
Borrower Eligibility
To be eligible for a PIC loan, a borrower must be a police officer in good standing currently employed by the San Francisco Police Department (SFPD). At the time of application, the borrower must provide a copy of the verification of employment as an officer in good standing with SFPD.
First-time homebuyer: The PIC loan is for the purchase of the officer’s first property in the City and County of San Francisco. The property must serve as the officer’s principal residence (be owner-occupied).
Homebuyer Education Requirement: Borrower will be required to complete a first-time homebuyer education course through one of MOH's 5 approved housing counseling agencies (see below). A certificate of completion of homebuyer education must be included with the application package.
First Mortgage: All City loan approvals are made in conjunction with a first loan commitment from a bank or mortgage lender. This loan must be a fixed interest rate, 30-year loan, fully amortizing. No interest only, state income, option ARM, balloon or negative amortization payment options loans
Debt-to-Income Ratio: Applicant’s monthly housing debt, including property taxes, property insurance, and if applicable mortgage insurance and homeowners’ association dues cannot be less than 38% of the household’s gross income. The ratio of monthly housing costs, plus all other household monthly debt (including credit cards, car payments, etc.) cannot exceed 45% of the household’s gross income.
Property Eligibility
Properties purchased with PIC funds must be single-family residences units in the City and County of San Francisco, which include: detached single-family house, condominiums and town houses.
Loan Amount
The loan amount available for PIC loans is $20,000.
Loan Terms
The loan may be used for either closing costs or down payment. There is no interest or shared appreciation. PIC loans may be layered with DALP, City Second loans, and used for the purchase of BMRs and Condo Conversion units, if the officer also meets the income eligibility criteria for those programs. If the officer moves out of the City and County of San Francisco or leaves the force of the SFPD within 5 years of the date the loan is issued, the loan must be paid back in full. After year five, the loan is forgiven in its entirety.
If the police officer is rendered permanently disabled or killed in the line of duty, the loan will be forgiven immediately in its entirety regardless of the amount due at the time.
Refinance/Subordination –The City loan can be subordinated to refinance the existing first mortgage for a lower interest rate and better loan terms as long as no cash equity is taken out of the property. All refinances must meet Mayor’s Office of Housing‘s (MOH) subordination requirements and be approved by MOH.
Owner Occupancy Requirement
A borrower must occupy the purchased property as its primary residence within 60 days after close of escrow.
Properties that have received City funding must remain owner-occupied throughout the term of the loan. Compliance monitoring will be performed and documented proof of occupancy required at intervals determined by the Mayor's Office of Housing.
Application Process
Borrower must:
· Complete a first-time homebuyer education course through one of MOH’s 5 approved housing counseling agencies. A certificate of completion of homebuyer education must be included with the application package.
· Have a ratified purchase agreement before apply for the PIC loan.
· Submit PIC application to lender at the same time you apply for your first mortgage along with the following documents:
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Provide verification of employment as an officer in good standing with SFPD.
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Complete set of past 3 years Federal income tax returns (included all schedules, signed and dated) and W-2 forms.
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Three current and consecutive pay stubs with year-to-date (YTD);
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Income Tax Affidavit (PIC-3) - if applicable
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First Time Homebuyer Affidavit (PIC-4);
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Homebuyer Education Certificate;
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Last 3 months bank statement for checking, savings & other pertinent investment accounts;
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Gift letter (if applicable);
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IRS form 4506;
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Lender can send application along with required documentation to MOH.
Loan Documents
After the PIC loan has approved, the commitment is good for 45 days. The City will provide funds and closing documents to the title company for borrowers’ signatures.
PIC Deed of Trust: The City Deed secures the loan against the title of the property. The City loan will subordinate to first mortgage.
PIC Note: The City Note contains an acceleration clause, which will call the entire loan due and payable upon sale; rental and title transfer of the property. The City Note also outlines the terms and repayments of the loan.
To Download PIC brochures application form: Brochures (pdf). or PIC application forms (pdf). For additional information, please contact Mayor's Office of Housing at 415-701-5500.
List of Approved Housing Counseling Agencies
Asian, Inc.
1167 Mission Street, 4th Floor
San Francisco, CA 94103
(415) 928-5910
Nobby Cheng - ncheng@asianinc.org
Mission Economic Development Association (MEDA)
3505 20th Street
San Francisco, CA 94110
(415) 282-3334 Ext. 29
Elisa Baeza - ebaeza@medasf.org
San Francisco Consumer Credit Counseling Service of San Francisco (CCCSF)
595 Market Street, 15th Floor
San Francisco, CA 94105
(415) 788-0288 Ext. 147
Matthew Rizzie -mrizzie@housingeducation.org
San Francisco Housing Development Corporation (SFHDC)
4439 3rd Street
San Francisco, CA 94124-3117
(415) 822-1022 Ext. 112
Ed Donaldson - ed@sfhdc.org
San Francisco Urban Community Housing Corporation (SF Urban CHC)
1730 O'Farrell Street, suite 124
San Francisco, CA 94115
(415) 252-0949
Cecilia Shepard - cshepard@sfurbanchc.org
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